Restaurants Encouraged to Automate and Outsource



Restaurant and catering Australia is encouraging members to automate and outsource as much as possible to save money in the face of high labour costs. Restaurant and Catering Australia has released the results of a survey showing wages and staff on-costs, including payroll tax and training, account for about 45 per cent of business expenses for members.

“We’re saying outsource everything you possibly can,” RCA chief executive John Hart said in a recent report in the Sydney Morning Herald. “Whether that’s taking reservations, cleaning the kitchen, cleaning the restaurant, laundry.

“We’re also trying to get them to invest in the cost of value-added food product as opposed to spending money on labour. So if they can buy in pre-prepared things that cost them less in kitchen labour then we’re trying to convince them to do that as well.”

Mr Hart acknowledged that automating processes and outsourcing tasks were job killers, but insisted operators no longer had any choice.

The 2014 Industry Benchmarking Report, based on the 2012-13 financial results of 340 members, found 12.9 per cent of respondents close on both Sundays and public holidays.

The vast majority said they closed at these times due to the cost of penalty rates on these days. The association is campaigning for the removal of penalty rates for casuals on weekends.

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August 12, 2014

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